The views expressed in this report are the views of the author(s) and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Directors or the governments they represent. ADB does not guarantee the source, originality, accuracy, completeness or reliability of any statement, information, data, finding, interpretation, advice, opinion, or view presented, nor does it make any representation concerning the same. Project Number: 46191-001 September 2016 Compendium of International Trade Supply Chain Processes in Myanmar: August 2016 Produced for the International Trade Supply Chain Working Group by the ADB Project TA 8707 (REG): Strengthening Trade Facilitation in the Greater Mekong Subregion through Partnerships with the Private Sector
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The views expressed in this report are the views of the author(s) and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Directors or the governments they represent. ADB does not guarantee the source, originality, accuracy, completeness or reliability of any statement, information, data, finding, interpretation, advice, opinion, or view presented, nor does it make any representation concerning the same.
Project Number: 46191-001 September 2016
Compendium of International Trade Supply Chain
Processes in Myanmar: August 2016
Produced for the International Trade Supply Chain Working Group by the ADB Project TA 8707 (REG): Strengthening Trade Facilitation in the Greater Mekong Subregion through Partnerships with the Private Sector
1
Compendium of International
Trade Supply Chain Processes
in Myanmar: August 2016
Produced for the International Trade Supply Chain
Working Group by the ADB Project TA 8707 (REG):
Strengthening Trade Facilitation in the Greater Mekong
Subregion through Partnerships with the Private Sector
I
ACKNOWLEDGEMENTS
ADB s project team members would like to express their grateful thanks to the following people for their
assistance with assembling and checking this compendium of International Trade Supply Chain
Processes:
U Nyi Nyi Aung, Chairman, Myanmar Customs Brokers Association
U Minn Maung Oo, Secretary General, Myanmar Customs Brokers Association
Daw Hla Hla Yee, Joint Secretary, Myanmar International Freight Forwarders Association
II
INTRODUCTION
This compendium has ee asse led y ADB s project TA 0 ‘EG Strengthening Trade
Facilitation in the GMS through Partnerships with the Private Sector . It as largely the ork of Ms Pwint Thet Wah, Trade Facilitation Specialist. Jacqueline Penfold, Consultant, and Chris Page, Team
Leader, assisted with the editing.
The compendium responds to a widely-recognised problem with the international trade supply chain
(ITSC) in Myanmar, namely that the many private and public sector stakeholders involved –
importers, exporters, freight forwarders, customs brokers, banks, transport operators, the Customs
Department, the Ministry of Commerce, and so on – have traditionally concentrated on their own
domains, and therefore have a i sufficie t u dersta di g a d appreciatio of o e a other s roles.
This often leads to misunderstandings and mistakes, which in turn can cause expensive delays. But
e e ore i porta tly, opportu ities for colla oratio are ei g issed: Mya ar s i ter atio al trade supply chain is cumbersome and complex, having been developed organically over many years,
uch of it duri g the cou try s isolatio fro i ter atio al arkets. It co tai s a o alies a d unnecessary procedures which stakeholder cooperation can both identify and resolve.
ADB s training of mixed groups of these stakeholders during the past year has demonstrated the
value of promoting a better mutual understanding of the ITSC, by producing concrete improvements
in a number of areas. To reinforce and institutionalise that dialogue, the International Trade Supply
Chain Working Group was launched on 9 August 2016. Established under the auspices of the Union of
Myanmar Federation of Chambers of Commerce & Industry (UMFCCI), this will be the principal forum
in which ITSC stakeholders can raise, discuss, and resolve ITSC-related problems: duplication,
redundancy, delays, and bottlenecks. In doing so, the ITSC Working Group will help to make it easier
for businesses to move their goods to and from Myanmar, and to invest in the country.
To aid the ITSC Worki g Group s regular deli eratio s, ADB has apped Mya ar s current import,
export, and transit processes – some 24 in total. These are all included in this compendium, for
reference in the first instance, but more particularly as the starting point for further improvements. It
is very important to remember that the ITSC is highly dynamic, and what applies one week may very
well not apply the next. This compendium does not, therefore, claim to be definitive, nor to tell the
whole story: that is not its point at all; it is, rather, a practical set of tools that the ITSC Working Group
– and any other interested stakeholders – can use to inform them of how the ITSC processes function,
and more particularly as a guide to the areas that require attention.
It ill e the ITSC Worki g Group s job to make improvements, or suggest these to the appropriate
authorities. Changes which occur as a result will have to be reflected in revised descriptions of the
ITSC processes, which should eventually appear in an updated compendium.
The compendium of ITSC processes also has another important function. It is the backbone of the
ITSC training programme, originally developed by ADB and now handed over to the Myanmar
International Freight Forwarders Association (MIFFA), which will be responsible for delivering further
ITSC workshops, on demand, for stakeholders throughout Myanmar. Based on previous experience,
these workshops are likely to identify issues with the trade supply chain that warrant the
III
consideration of the ITSC Working Group, and MIFFA will be responsible for ensuring that these are
passed on. MIFFA and the UMFCCI will also need to work together to ensure that the compendium is
regularly updated.
Finally, the ITSC processes will form an important element of the revised training and assessment
programme for customs brokers in Myanmar, which ADB s TA 8707 project is currently helping to
develop.
For further information about this compendium, or to get involved with the International Trade
IM13: Import Process for Non-Licensing System (Letter of Credit) 60-63
IM14: Import Process for Non-Licensing System (Telegraphic Transfer, after shipment) 64-68
IM15: Import to Special Economic Zones 69-72
IM16: Import of Household Goods/ Personal Effects 73-75
IM17: Import of Personal Effects (Diplomats) 76-78
Export Processes
E1: Licensed Export with Letter of Credit 79-83
E2: Licensed Export with Telegraphic Transfer (before shipment) 84-87
E3: Non-Licensed Export with Telegraphic Transfer (after shipment) 88-90
E4: Non-Licensed Export with Letter of Credit 91-93
E5: Border trade exportation at Muse 94-96
E6: Trade Fair Exhibition (outbound) 97-100
Transit Process
T1: Transit 101-104
V
ABBREVIATIONS & ACRONYMS
ADB Asian Development Bank
ASEAN Association of Southeast Asian Nations
CCR Central Cold Room
CMP Cut-Make-Pack
CMSD Central Medical Store Department, Ministry of Health
CoO Certificate of Origin
C/T Cycle Time
DO Delivery Order
FDA Food & Drugs Administration
FED Foreign Exchange Department
FERD Foreign Economic Relations Department, Ministry of Finance & Planning
FF Freight Forwarder
FOC Free of Charge
HTK Hta-Tha-Ka: import/export certificate issued by MoC to importer/ exporter
HQ Headquarters
ICD Inland Container Depot
IHD International Health Division
INGO International Non-Governmental Organisation
L/C Letter of Credit
LOB Lube Oil Berth
LTA Long Term Agreement
MACCS Myanmar Automated Customs Clearance System
MCD Myanmar Customs Department
MFTB Myanmar Foreign Trade Bank
MGMA Myanmar Garment Manufacturers Association
MIC Myanmar Investment Commission
MIFFA Myanmar International Freight Forwarders Association
MoC Ministry of Commerce
MoFA Ministry of Foreign Affairs
VI
MoH Ministry of Health
MoPF Ministry of Planning & Finance
MoU Memorandum of Understanding
MOGE Myanmar Oil and Gas Enterprise
MGJEA Myanmar Gems and Jewellery Entrepreneurs Association
MGMA Myanmar Garment Manufacturers Association
MPA Myanmar Port Authority
MPTA Myanmar Petroleum Trade Association
OGA Other Government Agency
OGL Open General License
OSS One-Stop Service
PO Postal Order
POL Port of Loading
RHCs Rural Health Centres
SAD Shipping Agency Department
SEZ Special Economic Zone
SO (DD) Special Order (Direct Delivery)
SRHCs Sub-rural Health Centres
TEC Tax Exemption Certificate
TSEZ Thilawa Special Economic Zone
TT Telegraphic Transfer
UMFCCI Union of Myanmar Federation of Chambers of Commerce & Industry
UNICEF United Nations International Children's Emergency Fund
USD United States Dollars
W/T Waiting Time
WHO World Health Organisation
VII
IMPORTANT NOTES
Cycle Time (C/T) and Waiting Time (W/T)
These terms are used in every ITSC process diagram contained in this compendium. Their purpose
is to illustrate the time taken at each stage of every process, as follows:
Cycle Time: The period usually required to complete one cycle of a given operation from start
to finish
Waiting Time: The time that usually elapses before a given stage of a process is completed, and
it is possible to move to the next stage
The process diagrams indicate the stakeholder which is principally responsible for completing
each stage.
Application of Incoterms and Price Recommendation Measure
The Myanmar Ministry of Commerce (MoC) allows only two Incoterms1 for importations to
Myanmar: CIF and CFR (the latter formerly known as CNF/ C&F).
Where goods are supplied under other Incoterms, for example DAP or DAT, AND where these
goods appear o the MoC s Negati e List, the Mya ar i porter has to produce for the MoC a pro-forma invoice which matches the value of the goods assessed by the MoC (which uses a price
reference database for the purpose of reaching what it considers to be the CIF value). Importers
who wish to obtain a MoC licence within one day need to produce printed evidence, from a
website such as www.alibaba.com , of the price of similar or identical goods.
If the value of the imported goods shown on the pro-forma invoice is lower than the MoC
estimate, the MoC requires the value to be uplifted to match. Most importers comply. Once the
MoC has accepted the revised pro-forma invoice, it issues a licence which shows the same value.
The licence fee bears no relationship to the value of the imported goods, so it is unclear why the
MoC requires this procedure in the first place. Assessment of value at importation is by law a
Customs matter, and the collection of import trade statistics is also the responsibility of the
Myanmar Customs Department (MCD).
The licence issued by the MoC becomes part of the document set submitted to the MCD at
i portatio . The acco pa yi g i oice is i aria ly doctored to atch the alue shown on the
licence (and thus on the MoC-accepted pro forma), since a financial penalty is imposed by the
MCD if it does not. It is de facto a fake, but created in order to comply with official requirements
rather than with fraud in mind.
In any case, the MCD ignores the MoC procedure, and insists (under the terms of the WTO
Valuation Agreement) on the original invoice and other supporting documentation being
presented. If the original Incoterms were other than CIF, the MCD then adds-in the missing
elements (insurance and freight, for example) in order to arrive at the CIF value. The customs duty
1 Incoterms 2010, International Chamber of Commerce (ICC).
This convoluted process, deriving from the restriction on available Incoterms, causes unnecessary
delays, encourages dishonesty among importers, unwittingly feeds the general belief in the MCD
that all importers produce fake invoices specifically for the purposes of valuation fraud, and may
well have an impact on the amount of commercial tax that importers eventually pay.
Similar problems occur with exported goods (on the Negative List), because the MoC restricts
Incoterms to CIF and FOB only (although the real commercial documents are assumed to be
produced in the country of importation).
The restrictions on Incoterms to those applying only to sea freight creates a particular problem for
co sig e ts a d i particular s all co sig e ts crossi g Mya ar s la d orders.
The MoC should relax its restrictions on Incoterms and bring its processes into line with the terms
of the WTO Valuation Agreement. This means that, for items on the Negative List, it should
require production of – and accept – the real commercial invoice and sales contract. This is the
minimum requirement. The MoC should also consider whether it requires any evidence of the
value of imported goods on the Negative List, since this element is already under Customs
control. Its concern should rather be the specification/composition of the goods, in which case
other forms of commercial documentation are readily available and easily produced.
Payments
Partly because of the restriction on Incoterms, partly as a legacy of former trade sanctions, but
mainly because of the undeveloped banking system in Myanmar (and the lack of correspondent
banks elsewhere in the world , dou le tra sactio s for Telegraphic Tra sfer TT 3 payments for
imports or exports to/ from Myanmar is the norm. Offshore companies set up in Singapore or
Malaysia (owned by Myanmar importers/exporters) handle the payments: firstly from the
offshore company account to the shipper; secondly from the importer/ exporter to the offshore
company account.
This is a time-consuming and expensive process which inevitably restricts market access to those
businesses able and willing to afford such arrangements. SMEs are forced to deal in cash, which
limits the scope of their business operations.
2 This is, of course, setti g aside the MCD s co ti ui g te de cy to ig ore the co ditio s of the WTO Valuatio
Agreement, and to calculate the value of imported goods by reference to its own price database, internet research, etc. 3 The term used in Myanmar for bank transfers.
Import Processes
Import
Procurement
process and
purchase order
Sales contract
Apply for
recommendation
letter from OGA
(if required)
Open L/C at
bank
Arrange
transportation. Unload
at warehouse.
Send the empty
container to ICD
Declare to
Customs
Cargo
arrival
Arrange
shipping for
departure
C/T: 3 days
W/T: 2 weeks
Importer
C/T: ½ day
W/T: 3 days
Importer
C/T: 1 day
W/T: 2 weeks
OGA
C/T: ½ day
W/T: 1 day
Bank/Logistics
C/T: 3 days
W/T: 5 days
Customs/Agent
C/T: 1 day
W/T: 30 days
(by Sea) Carrier
C/T: 1 day
W/T: 5 days (by Sea)
Freight Forwarder
C/T: 1 day
W/T: 2 days
Agent
IM1. Import Process with Letter of Credit (L/C)
C/T: Cycle time
W/T: Waiting time
Collect release
order and
delivery order
Apply for
import
licence
C/T: 1 day
W/T: 2 days
MoC
Bank
negotiation at
advising bank
and despatch
documents
C/T: ½ day
W/T: 3 days
Shipper/Courier
C/T: 1 day
W/T: 2 days
Carrier/SAD
Pay Customs agent
service fee
C/T: 3 days
W/T: 7 days
Finance (Importer)
Bill from
issuing bank
C/T: ½ day
W/T: 1 day
Bank/Logistics
IM1. Import Process with Letter of Credit (L/C)
Step 1: Procurement process and purchase order
Most importers undertake the following activities:
Establish the purchasing requirements of the business
Finalise a detailed specification of the items required
Analyse internet trade directories to source the items
Identify the import mode of transport, and specify type of payment (L/C in this
case)
Send an enquiry to the selected suppliers
Evaluate the quotations provided by the suppliers and select the most suitable
Send a purchase order to that supplier
Individual traders tend to cross the border and buy the goods themselves. The method of
payment is cash-down . Individual traders are only allowed to import Ks 10,000,000 worth
of goods each day but, before this, must apply to the Ministry of Commerce (MoC) office,
based at the border, for an import/export certificate.
Step 2: Sales contract
The supplier and the buyer agree, and negotiate if necessary, a sales contract which they
both sign.
Step 3: Applying for a recommendation letter from relevant ministries/
associations (if required)
The importer has to check the MoC website (www.commerce.gov.mm) to confirm whether a
recommendation letter is required for the goods.
This letter is an authorisation from the relevant authority or organisation in Myanmar which
approves the importation or exportation of the item concerned, e.g. the Ministry of
Information would have to approve, in advance, the import or export of walkie-talkies. A pro-
forma invoice must be submitted with any request for a recommendation letter. In some
cases, the authority will also confirm that the pro-forma invoice price is true and correct.
The following documents must support the request:
Original application letter (written request)
Copy of the pro-forma invoice
Copy of the packing list, if available
Copy of the sales contract
Copy of the Company Registration Certificate
Copy of HTK (Hta-Tha-Ka) (import/export certificate issued by MoC to
Copies of Form VI (company shares) and Form XXVI (list of company directors)
Step 4: Applying for an import licence at the Ministry of Commerce (if required)
The importer should visit the MoC website (www.commerce.gov.mm) to check whether an
import licence is required for the goods concerned. There are 4,405 tariff lines1 which
require an import licence a d these are sho o a egati e list hi h a e do loaded from the MoC website. The importer must be a member of Myanmar Trade Net before
applying for an import licence and will need to open a bank account at the Citizens Bank in
order to pay the licence application fee as an e-payment.
The Ministry of Commerce only allows the use of the following currencies and Incoterms for
the importation of the goods into Myanmar:
Types of Currencies
1. Euro
2. USD
3. Singapore Dollar
4. Japanese Yen
Types of Incoterms for import
1. CIF
2. CNF
The following documents must be submitted when applying for an import licence:
Application letter
Pro-forma invoice
Sales contract
Recommendation letter from related ministries/associations (if required)
Copy of the Company Registration Certificate
Copy of HTK (Hta-Tha-Ka) (import/export certificate issued by MoC to
importer/exporter)
Copies of Form VI (company shares) and Form XXVI (list of company directors)
The MoC has recently introduced an online licensing system; for more information refer to
Alternatively the MoC can be contacted by telephone:
General enquiries:
Nay Pyi Taw 067-408485
Yangon 01-241025
For enquiries regarding import/export licences:
Nay Pyi Taw 067-408170
Yangon 01-372718
For enquiries regarding e-payments:
Nay Pyi Taw 067-408497
Yangon 01-252018
For enquiries relating to the Citizens Bank:
Nay Pyi Taw 067-421985
Yangon 01-377461
For enquiries regarding e-tokens: 01-241025
Step 5: Opening a letter of credit (L/C) at the bank
The importer has to open an L/C at their bank in Myanmar based on their agreement,
submitting the following documents:
Bank application form
Pro-forma invoice
Sales contract
Cheque
Copy of the Company Registration Certificate
Copy of HTK (Hta-Tha-Ka) (import/export certificate issued by MoC to
importer/exporter)
Copies of Form VI (company shares) and Form XXVI (list of company directors)
The fee for opening an L/C at the bank is 0.25% of the invoice value (min US $50 – max
$1,500) and a SWIFT harge of US $5 is payable for each L/C.
Step 6: Arranging shipping for departure
The buyer needs to notify the supplier when the import licence, if required, is obtained so
that shipment for departure can be arranged. In turn the buyer needs to confirm the details
shown on the draft shipping documents, such as air waybill or bill of lading, invoice, packing
list, country of origin certificate and analysis reports (if required) before the original
documents are issued by the various stakeholders to avoid errors and therefore penalties.
The shipper submits the original shipping documents to the advising bank if the method of
payment is L/C.
Step 7: Bank negotiation at advising bank and dispatch of documents
If the shipping documents at 5 and 6 above are available and confirmed by both parties, the
shipper will send them to the advising seller s bank. The advising bank will then, on behalf
of the shipper, advise receipt to the issuing u er s bank.
Step 8: Bill issue from bank
The issuing bank will inform the buyer when the shipping documents have arrived so that the
buyer can collect these documents and use them to declare and clear the cargo with
Customs. The bank charges US $55 to handle each shipping bill.
Step 9: Cargo arrival
The buyer can trace the arrival of the consignment via www.track-trace.com using the
identification number of the air waybill, bill of lading or container.
Step 10: Collect release order and delivery order (sea freight only)
Once the cargo arrives at the port the agent needs to collect the release order from the box
operator/carrier and the delivery order from the shipping agency department (SAD).
Step 11: Declare to Customs
The agent can submit the CUSDEC-1 declaration form for the cargo at the Custom House in
Yangon, along with other documents which may be required such as import licence, invoice,
pa ki g list, ou tr of origi ertifi ate, a ifest, deli er order, ill of ladi g, age t s letter of undertaking, drug registration certificate (for medicines) and other relevant certificates as
i di ated the M a ar Custo s Depart e t s (MCD) website
(www.myanmarcustoms.gov.mm).
For border trade, the agent can submit the documents to Custom House for documentary
check and then they are returned in a sealed envelope to the agent. The agent sends the
envelope to Customs at the border post. Alternatively the agent can submit the documents
to Customs at the border post trade zone.
The MCD checks the document set, checks the tariff classification of the goods, and then
assesses the value based on the weekly exchange rate. The importer/agent subsequently
pays the associated duties and taxes.
Following the documentary checks above, the MCD randomly selects cargo for further checks
or immediate release. On a daily basis, 10% of cargo will be routed to the red ha el a d undergo a full inspection, 30% will be routed to the ello ha el for -ray scanning, and
60% will be routed to the gree ha el for immediate release without further inspection.
When the cargo is ready for release the agent provides Customs with the relevant gate pass
and a delivery list for the cargo. These forms are then signed by the terminal/border
The agent can submit the CUSDEC-1 declaration form for the cargo at the Custom House in
Yangon, along with other documents which may be required such as import licence, invoice,
packing list, country of origin certificate, manifest, delivery order, bill of lading, agent’s letter of undertaking, drug registration certificate (for medicines) and other relevant certificates as
indi ated y the Myan ar Custo s Depart ent’s (MCD we site (www.myanmarcustoms.gov.mm).
For border trade, the agent can submit the documents to Custom House for documentary
check and then they are returned in a sealed envelope to the agent. The agent sends the
envelope to Customs at the border post. Alternatively the agent can submit the documents
to Customs at the border post trade zone.
The MCD checks the document set, checks the tariff classification of the goods, and then
assesses the value based on the weekly exchange rate. The importer/agent subsequently
pays the associated duties and taxes.
Following the documentary checks above, the MCD randomly selects cargo for further checks
or i ediate release. On a daily asis, % of argo will e routed to the red hannel’ and undergo a full inspe tion, 3 % will e routed to the yellow hannel’ for -ray scanning, and
6 % will e routed to the green hannel’ for i ediate release without further inspe tion.
When the cargo is ready for release the agent provides Customs with the relevant gate pass
and a delivery list for the cargo. These forms are then signed by the terminal/border
authorities supervisor and the Customs examining officer, in order to allow release of the
cargo.
The Myanmar Customs Department is to introduce the Myanmar Automated Cargo
Clearance System (MACCS) in November 2016.This will allow customs declarations for air and
sea freight, as well as those for selected border crossing points, to be submitted online.
More information about MACCS can be found at www.maccs.gov.mm .
Step 9a: Arranging inland transportation
Before the cargo is released by Customs the agent makes arrangements for transporting the
cargo from the terminal/border post to the uyer’s pre ises.
Step 9b: Unloading the cargo at premises
After the argo has een released y Custo s it an e o ed to the uyer’s pre ises for unloading.
Heavy-duty trucks can only use the following routes in Yangon:
various stakeholders, to avoid errors and therefore penalties. The shipper sends the original
shipping documents to the buyer by the courier if the method of payment is telegraphic
transfer (TT).
Step 5: Cargo arrival
The buyer can trace the arrival of the consignment via www.track-trace.com using the
identification number of the bill of lading, air waybill or container.
Step 6: Collect release order and delivery order (for sea freight only)
Once the cargo arrives at the port, the agent needs to collect the release order from the box
operator/carrier and the delivery order from the shipping agency department (SAD).
Step 7: Declare to Customs
The agent can submit the CUSDEC-1 declaration form for the cargo at the Custom House in
Yangon, along with other documents which may be required such as drawback licence,
invoice, packing list, country of origin certificate, manifest, delivery order, bill of lading,
agent’s letter of undertaking and other rele ant ertifi ates as indi ated y the Myan ar Custo s Depart ent’s (MCD we site (www.myanmarcustoms.gov.mm).
For border trade, the agent can submit the documents to Custom House for documentary
check and then they are returned in a sealed envelope to the agent. The agent sends the
envelope to Customs at the border post. Alternatively the agent can submit the documents
to Customs at the border post trade zone.
The MCD checks the document set, checks the tariff classification of the goods, and then
assesses the value based on the weekly exchange rate. The importer/agent then pays the
associated duties and taxes at a rate of 100% (with a refund of 87.5% on re-export).
Following the documentary checks above, the MCD randomly selects cargo for further checks
or i ediate release. On a daily asis, % of argo will e routed to the red hannel’ and undergo a full inspe tion, 3 % will e routed to the yellow hannel’ for -ray scanning, and
6 % will e routed to the green hannel’ for i ediate release without further inspection.
When the cargo is ready for release the agent provides Customs with the relevant gate pass
and a delivery list for the cargo. These forms are then signed by the terminal/border
authorities supervisor and the Customs examining officer, in order to allow release of the
cargo.
The Myanmar Customs Department is to introduce the Myanmar Automated Cargo
Clearance System (MACCS) in November 2016.This will allow customs declarations for air and
Step 1: Procurement process and issue purchase order
Most importers undertake the following activities:
Establish the purchasing requirements of the business
Finalise a detailed specification of the items required
Analyse internet trade directories to source the items
Identify the import mode of transport, and specify type of payment (L/C in this
case)
Send an enquiry to the selected suppliers
Evaluate the quotations provided by the suppliers and select the most suitable
Send a purchase order to that supplier
Step 2: Sign contract
The supplier and the buyer agree, and negotiate if necessary, a sales contract which they
both sign.
Step 3: Arranging departure (pre-advice)
The shipper arranges departure of the cargo, the movement of which can be traced via
www.track-trace.com using the bill of lading number. The shipper sends the pre-advice (bill
of lading/air waybill/truck note, invoice and packing list) to the importer by fax and courier
service.
Step 4: Apply for import licence at MoC
The importer should visit the Ministry of Commerce (MoC) website
(www.commerce.gov.mm) to check whether an import licence is required for the goods
concerned. There are 4,405 tariff lines1 which require an import licence and these are shown
on a negati e list’ whi h an e downloaded fro the MoC we site. The i porter ust e a member of Myanmar Trade Net before applying for an import licence and will need to open a
bank account at the Citizens Bank in order to pay the licence application fee as an e-payment.
The Ministry of Commerce only allows the use of the following currencies and Incoterms for
pa king list, ountry of origin ertifi ate, anifest, ill of lading, agent’s letter of undertaking and other relevant certificates as indicated by the Myanmar Customs Depart ent’s (MCD website (www.myanmarcustoms.gov.mm).
The MCD checks the document set, checks the tariff classification of the goods, and then
assesses the value based on the weekly exchange rate. The importer/agent subsequently
pays the associated duties and taxes by PO cheque to Custom House in Yangon.
When the cargo arrives the agent informs the MCD and Customs attend the Lube Oil Berth
(LOB) as per steps 6-8 below.
The Myanmar Customs Department is to introduce the Myanmar Automated Cargo
Clearance System (MACCS) in November 2016.This will allow customs declarations for air and
sea freight, as well as those for selected border crossing points, to be submitted online.
More information about MACCS can be found at www.maccs.gov.mm .
Step 6: Arrival at Lube Oil Berth
The cargo arrives at the Lube Oil Berth (LOB) in Yangon.
Step 7: Collect delivery order
Once the cargo arrives at the LOB, the agent needs to collect the delivery order from the
shipping agency department (SAD).
Step 8: Customs examination
The cargo is examined at the LOB by Customs.
Step 9: Unloading fuel at LOB
After documentary check and physical examination by Customs, the fuel can be stored at the
LOB.
Step 10: Sending fuel samples to Myanmar Oil and Gas Enterprise (MOGE)
The importer sends a fuel sample to MOGE for testing and the subsequent result is collected
by the agent and submitted to Customs for attachment to the document set.
Step 11: Finalise file at Custom House (MCD HQ)
Following testing the agent submits the Customs case file to Custom House (MCD HQ).
Step 12: Pay fee to customs agent
The importer pays the customs agent/ broker for the services provided.
IM13. Import Process with Non-licensing System {Letter of Credit (L/C)}
Purchase
order Sales contract
Open L/C at
bank
Cargo
arrival
Arrange
shipping for
departure
C/T: 1 day
W/T: 3 days
Importer
Pay Customs
agent
C/T: ½ day
W/T: 3 days
Importer
C/T: ½ day
W/T: 1 day
Bank
C/T: 1 day
W/T: 45 days (by sea)
Logistics
C/T: 1 day
W/T: 5 days
(by Sea)
Shipper/Forwarder
C/T: Cycle time
W/T: Waiting time
Collect delivery
order and
release order
Bill from
issuing bank
C/T: ½ day
W/T: 1 day
Bank
C/T: 3 days
W/T: 7 days
Finance
(Importer)
Declare to
Customs
C/T: 1 day
W/T: 2 days
SAD/Agent/Carrier
New Cargo:
C/T: 3 days
W/T: 14 days
Recorded Cargo:
5 days
Agent/Customs
C/T: 1 day
W/T: 2 days
Agent
Arrange transportation,
Unload at warehouse.
Send the empty container
to ICD
IM13. Import Process with Letter of Credit/Non Licensing System
Step 1: Procurement process and purchase order
Most importers undertake the following activities:
Establish the purchasing requirements of the business
Finalise a detailed specification of the items required
Analyse internet trade directories to source the items
Identify the import mode of transport, and specify type of payment (L/C in this
case)
Send an enquiry to the selected suppliers
Evaluate the quotations provided by the suppliers and select the most suitable
Send a purchase order to that supplier
Individual traders tend to cross the border and buy the goods themselves. The method of
pay ent is ash-down’. Indi idual traders are only allowed to i port Ks , , worth of goods each day but, before this, must apply to the Ministry of Commerce (MoC) office,
based at the border, for an import/export certificate.
Step 2: Sales contract
The supplier and the buyer agree, and negotiate if necessary, a sales contract which they
both sign.
Step 3: Opening a letter of credit (L/C) at the bank
The importer has to open an L/C at their bank in Myanmar based on their agreement,
submitting the following documents:
Bank application form
Pro-forma invoice
Sales contract
Cheque
Copy of the Company Registration Certificate
Copy of HTK (Hta-Tha-Ka) (import/export certificate issued by MoC to
importer/exporter)
Copies of Form VI (company shares) and Form XXVI (list of company directors)
The fee for opening an L/C at the bank is 0.25% of the invoice value (min US $50 – max
$ , and a SWIFT’ harge of US $ is paya le for ea h L/C.
Step 4: Arranging shipping for departure
The buyer needs to confirm the details shown on the draft shipping documents, such as air
waybill or bill of lading, invoice, packing list, country of origin certificate, and analysis reports
(if required) before the original documents are issued by the various stakeholders to avoid
errors and therefore penalties. The shipper submits the original shipping documents to the
advising bank if the method of payment is L/C.
Step 5: Bank negotiation at advising bank and despatch of documents
If the shipping documents at 3 and 4 above are available and confirmed by both parties, the
shipper will send the to the ad ising (seller’s ank. The ad ising ank will then, on ehalf of the shipper, ad ise re eipt to the issuing ( uyer’s ank.
Step 6: Bill issue from bank
The issuing bank will inform the buyer when the shipping documents have arrived so that the
buyer can collect these documents and use them to declare and clear the cargo with
Customs. The bank charges US $55 to handle each shipping bill.
Step 7: Cargo arrival
The buyer can trace the arrival of the consignment via www.track-trace.com using the
identification number of the air waybill, bill of lading or container.
Step 8: Collect release order and delivery order (sea freight only)
Once the cargo arrives at the port, the agent needs to collect the release order from the box
operator/carrier and the delivery order from the shipping agency department (SAD).
Step 9: Declare to Customs
The agent can submit the CUSDEC-1 declaration form for the cargo at the Custom House in
Yangon, along with other documents which may be required such as invoice, packing list,
ountry of origin ertifi ate, anifest, deli ery order, ill of lading, agent’s letter of
undertaking, drug registration certificate (for medicines), and other relevant certificates as
indi ated y the Myan ar Custo s Depart ent’s (MCD we site (www.myanmarcustoms.gov.mm).
For border trade, the agent can submit the documents to Custom House for documentary
check and then they are returned in a sealed envelope to the agent. The agent sends the
envelope to Customs at the border post. Alternatively the agent can submit the documents
to Customs at the border post trade zone.
The MCD checks the document set, checks the tariff classification of the goods, and then
assesses the value based on the weekly exchange rate. The importer/agent subsequently
pays the associated duties and taxes.
Following the documentary checks above, the MCD randomly selects cargo for further checks
or i ediate release. On a daily asis, % of argo will e routed to the red hannel’ and undergo a full inspe tion, 3 % will e routed to the yellow hannel’ for -ray scanning, and
6 % will e routed to the green hannel’ for i ediate release without further inspection.
IM14. Import Process with Non-licensing System – TT After Shipment
Purchase
order Sales contract
Sent original
shipping
documents by
courier
Cargo
arrival
Arrange
shipping for
departure
C/T: 1 day
W/T: 3 days
Importer
Pay to
Customs
agent
C/T: ½ day
W/T: 3 days
Importer
C/T: 1 day
W/T: 3 days
Shipper/Courier
C/T: 1 day
W/T: 45 days (by sea)
Logistics
C/T: 1 day
W/T: 5 days (by Sea)
Shipper/Forwarder
C/T: Cycle time
W/T: Waiting time
Collect
delivery order
and release
order
TT Payment
C/T: 1 day
W/T: 1 day
Bank
C/T: 3 days
W/T: 7 days
Finance
(Importer)
Declare to
Customs
C/T: 1 day
W/T: 2 days
SAD/Agent/Carrier
New Cargo:
C/T: 3 days
W/T: 14 days
Recorded Cargo:
5 days
Agent/Customs
C/T: 1 day
W/T: 1 day
Agent
Arrange transportation,
unload at warehouse.
Send the empty container
to ICD
IM14. Import Process with Telegraphic Transfer/Non Licensing System
Step 1: Procurement process and purchase order
Most importers undertake the following activities:
Establish the purchasing requirements of the business
Finalise a detailed specification of the items required
Analyse internet trade directories to source the items
Identify the import mode of transport, and specify type of payment (TT in this
case)
Send an enquiry to the selected suppliers
Evaluate the quotations provided by the suppliers and select the most suitable
Send a purchase order to that supplier
Individual traders tend to cross the border and buy the goods themselves. The method of
pay ent is ash-down’. Indi idual traders are only allowed to i port Ks , , worth of goods each day but, before this, must apply to the Ministry of Commerce (MoC) office,
based at the border, for an import/export certificate.
Step 2: Sales contract
The supplier and the buyer agree, and negotiate if necessary, a sales contract which they
both sign.
Step 3: Arranging shipping for departure
The buyer needs to confirm the draft shipping documents such as bill of lading, invoice,
packing list, country of origin certificate, and analysis reports (if required) before issuing the
original documents by the shipper. The shipping documents are confirmed by both parties,
the shipper sends them to the buyer by courier service.
Step 4: Cargo arrival
The buyer can trace the arrival of the consignment via www.track-trace.com using the
identification number of the bill of lading, air waybill or container.
Step 5: Collect release order and delivery order (sea freight)
Once the cargo arrives at the port, the agent needs to collect the release order from the box
operator/carrier and the delivery order from the shipping agency department (SAD).
The agent can submit the CUSDEC-1 declaration form for the cargo at the Custom House in
Yangon, along with other documents which may be required such as invoice, packing list,
ountry of origin ertifi ate, anifest, deli ery order, ill of lading, agent’s letter of
undertaking, drug registration certificate (for medicines), and other relevant certificates as
indi ated y the Myan ar Custo s Depart ent’s (MCD we site (www.myanmarcustoms.gov.mm).
For border trade, the agent can submit the documents to Custom House for documentary
check and then they are returned in a sealed envelope to the agent. The agent sends the
envelope to Customs at the border post. Alternatively the agent can submit the documents
to Customs at the border post trade zone.
The MCD checks the document set, checks the tariff classification of the goods, and then
assesses the value based on the weekly exchange rate. The importer/agent subsequently
pays the associated duties and taxes.
Following the documentary checks above, the MCD randomly selects cargo for further checks
or immediate release. On a daily basis, 10% of cargo will be routed to the red hannel’ and undergo a full inspection, 30% will be routed to the yellow hannel’ for -ray scanning, and
60% will be routed to the green hannel’ for i ediate release without further inspection.
When the cargo is ready for release the agent provides Customs with the relevant gate pass
and a delivery list for the cargo. These forms are then signed by the terminal/border
authorities supervisor and the Customs examining officer, in order to allow release of the
cargo.
The Myanmar Customs Department is to introduce the Myanmar Automated Cargo
Clearance System (MACCS) in November 2016.This will allow customs declarations for air and
sea freight, as well as those for selected border crossing points, to be submitted online.
More information about MACCS can be found at www.maccs.gov.mm .
Step 7a: Arranging inland transportation
Before the cargo is released by Customs the agent makes arrangements for transporting the
cargo from the terminal/border post to the uyer’s pre ises.
Step 7b: Unloading the cargo at premises
After the argo has een released y Custo s it an e o ed to the uyer’s pre ises for unloading.
Heavy-duty trucks can only use the following routes in Yangon:
pays the associated duties and taxes for the goods not included in the Master List which are
therefore not exempted by the TSEZ Committee.
Following the documentary checks above, the MCD randomly selects cargo for further checks
or immediate release. On a daily asis, % of argo will e routed to the red hannel’ and undergo a full inspe tion, 3 % will e routed to the yellow hannel’ for -ray scanning, and
6 % will e routed to the green hannel’ for i ediate release without further inspection.
When the cargo is ready for release the agent provides Customs with the relevant gate pass
and a delivery list for the cargo. These forms are then signed by the terminal/border
authorities supervisor and the Customs examining officer, in order to allow release of the
cargo.
The Myanmar Customs Department is to introduce the Myanmar Automated Cargo
Clearance System (MACCS) in November 2016.This will allow customs declarations for air and
sea freight, as well as those for selected border crossing points, to be submitted online.
More information about MACCS can be found at www.maccs.gov.mm .
Step 9: Finalise case file at TSEZ OSS
The agent submits a Customs case file (sealed envelope) at the OSS at TSEZ.
Step 10: Pay the customs agent’s fee
The importer pays the customs agent/ broker for services provided.
IM16. Import Process - Personal Effects (Household Goods)
Step 1: Arranging shipping for departure
The freight forwarder arranges shipment after agreement with the consignee.
Step 2: Apply for a recommendation letter from the relevant organisation
The consignee/agent applies for a recommendation letter from the relevant organisation.
This is usually linked to the type of business concerned, e.g. scholarship students would apply
to the university overseas; an engineer working in Singapore would require their employment
contract, and so on.
Step 3: Cargo arrival
The consignee can trace the arrival of the consignment via www.track-trace.com using the
identification number of the bill of lading, air waybill or container.
Step 4: Collect release order and delivery order (sea freight only)
Once the effects arrive at the port, the agent needs to collect the release order from the box
operator/carrier and the delivery order from the shipping agency department (SAD).
Step 5: Declare to Customs
The agent can submit the CUSDEC-1 declaration form for the cargo at the Custom House in
Yangon, along with other documents which may be required such as the recommendation
letter from relevant organisation, invoice, packing list, country of origin certificate, manifest,
deli ery order, ill of lading, agent’s letter of undertaking and other rele ant ertifi ates as indi ated y the Myan ar Custo s Depart ent’s (MCD we site (www.myanmarcustoms.gov.mm).
For household effects crossing the land border, the agent can submit the documents to
Custom House for documentary check and then they are returned in a sealed envelope to the
agent. The agent sends the envelope to Customs at the border post. Alternatively the agent
can submit the documents to Customs at the border post trade zone.
The MCD checks the document set, checks the tariff classification of the goods, and then
assesses the value based on the weekly exchange rate. Some of the effects bought overseas,
depending on when and where they were purchased, may be liable to tax and duty and the
consignee/agent will need to pay this. Customs may examine the effects.
When the cargo is ready for release the agent provides Customs with the relevant gate pass
and a delivery list for the cargo. These forms are then signed by the terminal/border
The freight forwarder arranges shipping for departure after agreement with the
consignee/diplomat.
Step 2: Apply for a recommendation letter from the Ministry of Foreign Affairs
(MoFA)
The consignee/agent can apply for a recommendation letter at MoFA in order to claim a tax
exemption certificate. The agent submits the following documents:
1. Written request
2. Invoice
3. Packing list
4. Letter from organisation/ ministry from home country
Step 3: Cargo arrival
The consignee can trace the arrival of the consignment via www.track-trace.com using the
identification number of the bill of lading, air waybill or container.
Step 4: Collect release order and delivery order (sea freight only)
Once the effects arrive at the terminal, the agent needs to collect the release order from the
box operator/carrier and the delivery order from the shipping agency department (SAD).
There is no requirement to collect a delivery order for airfreight.
Step 5: Declare to Customs
The agent has to submit the CUSDEC-1 declaration form for the effects at the Custom House in
Yangon, along with other documents which may be required such as recommendation letter
from MoFA, invoice, packing list, manifest, delivery order, bill of lading/air waybill, agent’s letter of undertaking and other relevant certificates as indicated by the Myanmar Customs
Depart ent’s (MCD we site (www.myanmarcustoms.gov.mm). Customs check the
documents, and then release the goods following a check of any seals that are present.
The Myanmar Customs Department is to introduce the Myanmar Automated Cargo Clearance
System (MACCS) in November 2016.This will allow customs declarations for air and sea freight,
8. Copies of Form VI (company shares) and Form XXVI (list of company directors)
Customs then randomly select cargo containers for further checks or immediate release. On
a daily basis, 10% of cargo will be routed to the red hannel’ and undergo a full inspe tion, 30% will be routed to the yellow hannel’ for -ray scanning, and 60% will be routed to the
green hannel’ for i ediate release without further inspe tion. E ery e portation is sealed by Customs prior to release.
The Myanmar Customs Department is to introduce the Myanmar Automated Cargo
Clearance System (MACCS) in November 2016. This will allow customs declarations for air
and sea freight, as well as those for selected border crossing points, to be submitted online.
More information about MACCS can be found at www.maccs.gov.mm .
Step 9: Insurance certificate
If the ter s of the sales ontra t are CIF’ (Incoterms-2010) the agent arranges insurance
cover for the cargo and obtains a certificate.
Step 10: Applying for a Country of Origin Certificate (non-preferential) at UMFCCI
Every export requires a non-preferential origin certificate which the agent can apply for at
the Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry
(UMFCCI) in Yangon by submitting the following documents:
1. Invoice
2. Export declaration (CUSDEC-2)
3. Online application form
Step 11: Applying for a preferential origin certificate at MoC
Preferential certificates of origin are available on application to the Ministry of Commerce in
Nay Pyi Taw. There are different application forms depending on where the goods are being
exported to:
1. Form D (ASEAN – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines,
Singapore, Thailand, Viet Nam)
2. Form E (ASEAN plus 6 –Australia, China, India, Japan, New Zealand and South Korea)
Step 12: Submitting the original shipping documents to the bank
The original shipping documents are submitted to the advising bank by the consignor.
E3. Non-Licensed Export with Telegraphic Transfer (TT – After Shipment)
C/T: ½ day
W/T: 1 day
MoC
C/T: ½ day
W/T: 3 days
Courier/Shipper
C/T: 1 day
W/T: 3 days
Shipper/FF
Fumigation,
quarantine,
phytosanitary
C/T: Cycle time
W/T: Waiting time
Book vessel
E3. Non-Licensed Export Process with Telegraphic Transfer after
Shipment
Step 1: Purchase order
The importer sends a purchase order to the exporter.
Step 2: Sales contract
The exporter and the importer negotiate and agree a sales contract which they both sign.
Step 3: Booking the vessel
The freight forwarder/agent books the vessel if the cargo is ready for export.
Step 4: Fumigation, quarantine and stuffing (if required)
If required by the importer, the cargo is fumigated and quarantined before being stuffed into
a container; these services are mostly carried out by service providers such as SGS, Myanmar.
Step 5: Declare to Customs for export
The agent submits an export declaration prior to departure, which requires the following
documents:
1. CUSDEC-2
2. Invoice
3. Packing list
4. Export licence (if required)
5. Certificate (e.g. FDA certificate, if required by importer)
6. Copy of the Company Registration Certificate
7. Copy of HTK (Hta-Tha-Ka) (import/export certificate issued by MoC to
importer/exporter)
8. Copies of Form VI (company shares) and Form XXVI (list of company directors)
Customs then randomly select cargo containers for further checks or immediate release. On
a daily basis, 10% of cargo will be routed to the red hannel’ and undergo a full inspe tion, 30% will be routed to the yellow hannel’ for -ray scanning, and 60% will be routed to the
green hannel’ for i ediate release without further inspe tion. E ery e portation is sealed
by Customs prior to release.
The Myanmar Customs Department is to introduce the Myanmar Automated Cargo
Clearance System (MACCS) in November 2016. This will allow customs declarations for air
and sea freight, as well as those for selected border crossing points, to be submitted online.
More information about MACCS can be found at www.maccs.gov.mm .
Step 6: Insurance certificate
If the terms of the sales ontra t are CIF’ (In oter s-2010) the agent arranges insurance
cover for the cargo and obtains a certificate.
Step 7: Applying for a Country of Origin Certificate (non-preferential) at UMFCCI
Every export requires a non-preferential origin certificate which the agent can apply for at
the Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry in
Yangon by submitting the following documents:
1. Invoice
2. Export declaration (CUSDEC-2)
3. Online application form
Step 8: Applying for a preferential origin certificate at MoC
Preferential certificates of origin are available on application to the Ministry of Commerce in
Nay Pyi Taw. There are different application forms depending on where the goods are being
exported to:
1. Form D (ASEAN – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines,
Singapore, Thailand, Viet Nam)
2. Form E (ASEAN plus 6 –Australia, China, India, Japan, New Zealand and South Korea)
Step 9: Sending the original shipping documents to the importer
The exporter sends the original shipping documents to the importer by courier.
Step 10: Pay customs agent
The exporter pays the customs agent/ broker for the services provided.
In many cases, the importer enters from China and purchases the cargo for cash in Muse.
Alternatively, the importer remits payment to the exporter by telegraphic transfer (TT),
usually after the export cargo has been delivered.
Step 2: Signed contract
Non-cash exports require a sales contract, signed by both parties after an agreement is
reached on terms and conditions.
Step 3: Book the truck
The agent books a truck so the cargo can be transported.
Step 4: Stuffing the cargo
Once the truck is obtained the exporter arranges loading (stuffing).
Step 5: Fumigation and quarantine (if required)
If required by the importer, the cargo is fumigated and quarantined before being stuffed into
a container; these services are mostly carried out by service providers such as SGS, Myanmar.
Step 6: Declare to Customs for export
The consignor/agent submits an export declaration prior to departure, which requires the
following documents:
1. CUSDEC-2
2. Invoice
3. Packing list
4. Export licence (if required)
5. Certificate (e.g. FDA certificate, if required by importer)
6. Copy of the Company Registration Certificate
7. Copy of HTK (Hta-Tha-Ka) (import/export certificate issued by MoC to
importer/exporter)
8. Copies of Form VI (company shares) and Form XXVI (list of company directors)
Customs then randomly select cargo containers for further checks or immediate release. On
a daily basis, 10% of cargo will be routed to the red hannel’ and undergo a full inspe tion, 30% will be routed to the yellow hannel’ for -ray scanning, and 60% will be routed to the
green hannel’ for i ediate release without further inspe tion. E ery e portation is sealed by Customs prior to release.
The Myanmar Customs Department is to introduce the Myanmar Automated Cargo
Clearance System (MACCS) in November 2016. This will allow customs declarations for air
and sea freight, as well as those for selected border crossing points, to be submitted online.
More information about MACCS can be found at www.maccs.gov.mm .
Step 7: Insurance certificate
If the terms of the sales ontra t are CIF’ (In oter s-2010) the agent arranges insurance
cover for the cargo and obtains a certificate.
Step 8: Applying for a Country of Origin Certificate (non-preferential) at UMFCCI
Every export requires a non-preferential origin certificate which the agent can apply for at
the Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry in
Yangon by submitting the following documents:
1. -Invoice
2. –Export declaration (CUSDEC-2)
3. -Online application form
Step 9: Applying for a preferential origin certificate at MoC
Preferential certificates of origin are available on application to the Ministry of Commerce in
Nay Pyi Taw. There are different application forms depending on where the goods are being
exported to:
1. Form D (ASEAN – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines,
Singapore, Thailand, Viet Nam)
2. Form E (ASEAN plus 6 –Australia, China, India, Japan, New Zealand and South Korea)
Step 10: Sending the original shipping documents to the importer
The exporter sends the original shipping documents to the importer by courier.
Step 11: Pay customs agent
The exporter pays the customs agent/ broker for the services provided.